Page 41 - October 2020
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SPECIAL FEATURE:  RETAIL EXPANSION



          In  the  last  few  months,  grocery  retail  has  changed                                                                                                                                                             FRED PERRY
        fundamentally,  for  the  short  term  at  least.  The  in-store                                                                                     Five Tips
        experience has evolved as retailers have put social-distancing
        measures into place. Customer numbers have been limited,
        flow is being manged and the checkout experience has been
        transformed. This is according to Stewart Samuel, Program
        Director IGD Services Canada in his piece ‘What will grocery                                                           for Global Expansion
        retailing look like in a post-Covid-19 world?’
          Samuel  expresses  that  the  trading  environment  has
        already  adapted  to  the  coronavirus  pandemic  and
        many  of  the  changes  put  in  place  to  support  physical
        distancing are expected to remain, with retailers starting
        to  consider  the  implications  for  future  store  design.
        Physical  stores  will  need  to  be  more  agile  and  flexible
        to accommodate extreme trading cycles and a stronger
        focus  on  operational  efficiency  versus  retail  theatre
        could  be  a  legacy  of  the  pandemic.  Online  grocery
        retail is expected to remain at an elevated penetration,
        relative  to  pre-crisis  levels  and  retailers  are  investing
        in  expanding  fulfilment  capacity  and  new  operators
        are  attracted  by  the  enhanced  growth  opportunities.

        LIFE AFTER COVID-19:                                                                                                                                       As retailers reconsider the layout and locations of their stores
        WHAT’S NEXT FOR RETAIL?                                                                                                                                    the world over, some continue to expand their global reach –
          Brands have had to adapt and learn over the lockdown
        period  and  throughout  the  coronavirus  outbreak.  An                                                                                                   looking at opening new stores in towns and cities across Europe.
        example of this is Hotel Chocolat, who have adapted as
        demand grew online as stores shut. The brand was forced                                                                                                    Here, Neil Coales, Founder of Pan-European construction
        to close its shops and shift stock - and transactions – online
        for the Covis-19 lockdown, will inform its future strategy.                                                                                                firm, Agilité Solutions – who counts the likes of Fred Perry,
        Angus Thirwell, Co-Founder and Chief Executive of Hotel                                                                                                    JD Sports, Five Guys and Tiffany & Co among its roster –
        Chocolat  said: “The  challenges  of  Covid-19  have  pushed
        us to accelerate many of our existing plans and strategic                                    BROOK’S BROTHERS                                              looks at five things to take into account from the start…


                                                                                                                              W            emerge,  as  a  blend  of  retail,  hospitality  and   pertinent topic at present – and one that has been heighted

                                                                      initiatives,  helping  to;  strengthen  our  financial  position,    ith  a  new-look  shopping  district  starting  to   Understandably, disabled access and egress is a particularly
                                                                      improve  our  multichannel  capability,  deepen  customer            leisure  outlets  co-exist  to  encourage  local   because  of  the  pandemic.  How  a  space  is  laid  out,  and
                                                                      engagement and loyalty, and accelerate the rate of product   Winvestment and socio-economic growth, what   the public’s journey through it, must be carefully managed
                                                                      innovation, whilst continuing to make good progress in our   should brands consider when setting up shop in a new location?  throughout  all  elements  of  the  planning,  construction,  and
                                                                      two new sizeable markets of the USA and Japan.”          1.  BEGIN BY FINDING THE RIGHT PROPERTY      fit-out stages.
                                                                        In a separate example, Card Factory has stepped up its   Whether an independent store or a multi-national franchise, it’s   4.  DON’T FORGET THE FAÇADE
                                                                      multichannel investment in the last few months, launching   important to work with a local property consultant who has   Catching  the  eye  of  passers-by  has  never  been  more
                                                                      a new e-commerce website, trialling click and collect and   ‘on-the-ground’ knowledge of the region you’re looking at. Lease   important  for  retailers,  but  for  those  who  rely  on  their
                                                                      planning a mobile app as it looks to differentiate itself from   terms and building regulations can vary significantly from country-  consistent  visual  identity  as  part  of  their  curb  appeal,  it’s
                                                                      online-only competitors. It is also pausing new store format   to-country, while some markets can be quite closed to ‘outsiders’   worth knowing what is, and isn’t, permitted in your potential
                                                                      trials as it looks to understand where shoppers will want to   – particularly where prime property locations are concerned.   new home.
                                                                      buy in the future. The steps came after online sales growth   2.  CONDUCT A STRUCTURAL SURVEY PRIOR   Paris  and  Prague,  for  example,  have  different  rules  and
                                                                      of  120  per  cent  during  the  Covid-19  lockdown  helped   TO SIGNING                              departments  for  potential  changes  to  the  frontage  in
                                                                      Card  Factory  offset  the  effect  of  shutting  its  more  than   Once  you’ve  found  the  ideal  home  for  your  new  store,   protected areas – such as historic buildings or prestigious
                                                                      1,000 UK shops.                                          compare any architectural plans or drawings with a physical   postcodes  –  and  these  extra  layers  of  administration  can
                                                                        The future of retail may look very different by the end of   site  visit  and  structural  survey.  Buildings  are  often  updated,   have a knock-on effect on schedules and plans.
                                                                      this year, a stark contrast from the start of the year, and a   reconfigured, and extended over time – without such changes   5.  STAFF FACILITIES MUST BE TAKEN
                                                                      key example of this is humanless retail, highlighted by H&M   being translated onto official records. Taking the time to fully   INTO ACCOUNT
                                                                      Group  who  has  launched  its  first  automated-retail  store   understand  the  dimensions  and  nuances  of  a  location  is  a   Alongside the regulations for the shopfront and interior, there
                                                                      using smart vending machines in Paris. The retail experience   crucial component of design, planning and budgeting.  are also guidelines around the infrastructure which needs to
                                                                      is centred on a huge interactive touch screen with a custom   3.  INCORPORATE REGULATIONS AND         be in place for the back of house too. For example, in France
                                                                      software interface; the machine features beautifully presented   PERMISSIONS INTO YOUR ESTIMATES      there are strict rules around providing changing facilities for
                                                                      illuminated display windows showcasing a curated selection   There are several things to consider when forecasting investment   colleagues, and places to prepare and reheat food.
                                                                      of the brands scented bath and body products. The Paris unit   levels – both in terms of time and money – particularly regarding   While kick-starting the global economy and a desire to ‘get
                                                                      is just the first step, as there are big plans for humanless retail   a change of use. If you’re looking to open an interiors outlet   back to normal’ offers an opportunity for retailers looking
                                                                      with a widespread rollout of the machines set for 2021.  in the newly-vacated home of a ladies wear brand, it can be   to  entice  shoppers  back  across  the  threshold,  taking  the
                                                                        The fallout – and recovery – of the retail industry will vary   reasonably  straightforward. Whereas  converting  a  restaurant   time to fully understand the country you’re looking at – and
                                                                      by sub-sector, all of which will be facing different challenges   into a shoe shop will inevitably present much more regulatory   surrounding yourself with the right people and information
        H&M                                                           and obstacles in this new world of retail.               paperwork – which differs from locality to locality.   to help get your ‘ducks in a row’, is key.

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